Author: SME Chamber

GRTU warmly welcomed the resolution on the next generation of SME finance programmes adopted by a large majority at the European Parliament (EP). We feel the document sums up very well the main challenges facing European SMEs when it comes to access to finance and provides a comprehensive set of possible measures to improve the status quo. The organisation particularly appreciated the resolution's calls for tailored measures adapted to the reality of SMEs, which are very heterogeneous and go from traditional and family-run businesses to high-tech and fast growing companies. It also backed the need to address market failures, to create better and more complete funding programmes and to remove administrative barriers that limit the uptake of the existing schemes.

 

The Parliament made it clear that there is no „one-size-fits-all‟ answer to their needs, and that each of them requires tailored interventions that respect this diversity. It also stressed that market failures must be addressed and red tape linked to SME finance programmes must be reduced, two points that we have also put forward quite vocally and frequently.

Traditional and family-run businesses depending on loan financing must be supported mainly via guarantees. The existing guarantee instruments have proved their worth, but administrative procedures must be simplified and the use of structural funds in this respect should be made easier, also according to the Parliament's resolution. On the other hand, small businesses working on riskier projects such as innovation, start-ups and business transfers will require "mezzanine finance" instruments capable of carrying a higher degree of risk. Unfortunately, these instruments are not yet provided to a sufficient degree by the market – that is why the Parliament's resolution calls for more attention to "mezzanine finance" in the next generation of programmes. Moreover, the text stresses that high-tech and fast growing companies will not develop without a functioning market for venture capital, equity and bonds.

The Parliament's resolution is also very clear on the need to strengthen and improve functioning SME finance schemes, calling for instance for more funding for the "CIP" programme and for innovative financial instruments. Furthermore, it places a clear emphasis on the necessity to reduce administrative barriers, which often trigger excessive expenses in time and money for small companies compared to the benefits of the relatively small amounts that they receive.

The resolution approved by MEPs today provides a solid action path for the next months and years. We are thankful to all members of the European Parliament, in particular to those belonging to the SME Intergroup for the preparatory work. It is now up to the European Commission to take over responsibility and to ensure that these recommendations are fully taken on board.

GRTU's Renewable Energy Section has today met at the GRTU to discuss the Solar Water Heaters and Photovoltaics Rebate Scheme. The meeting was very well attended and all present made very valid contributions. The meeting was chaired by the president representing the sector and GRTU Council Member Noel Gauci. Prior to this meeting another preparatory meeting was also held and several meetings with the MRA to iron out the issues the sector had to put forward.

 

Solar Water Heaters

Applications

Even though the MRA has now accepted receiving applications by post all present agreed that if consumers wanted they could have their application checked by a knowledgeable person and receive an acknowledgement.

The application was also simplified so that consumers do not have to indicate how much income they have and there is no longer the requirement to provide pictures before, only after.

Technician Courses

Here was general agreement that the requirements set are difficult to reach so much so that there is currently very low participation and GRTU is therefore studying the possibility to start offering these courses itself if the requirements remain so high.

Price of products

Members complained that sometimes the MRA enquires about the price of a product if it sees it as high or increase. GRTU is of the belief that consumers have a vast choice and higher prices usually result in better products. GRTU therefore advised its members that MRA are providing public funds and they should have some form of possibility to enquire however they can go no further as there cannot be any price fixing. To be fair only very few cases of such were reported.

Use of funds

It was decided that if funds are not taken up more funds should go into advertisement.

Photovoltaics

Increase in panels

GRTU is disappointed that MRA has declined the sector of the possibility to add panels to an existing system which is designed to take more panels. We firmly believe that this will only help Malta in becoming more dependable of renewable energy. There are consumers who were skeptical of the technology but still decided to try it out. These now want to increase panels on a system that is equipped for more panels as they have experienced the benefits. These however have to wait 5 years as MRA will not let them touch the system.

Deposits

MRA had put forward a suggestion that an energy audit is carried out at a fee for potential clients however this was voted against as it would be something to add bureaucracy.

Launch

GRTU is chasing and insisting with the MRA to launch the scheme as soon as possible as the sector is in dire need for the scheme to be launched and we have already started to experience redundancies.

On a general note the participants agreed that the GRTU should continue pushing Government for repeated schemes, which the GRTU will do.

Certain big mouths like to refer to the National waste management and compliance scheme, Green MT, as "the company of Vince Farrugia" or even  stating that Green MT was established to enrich Vince Farrugia and the GRTU. These claims are not only ridiculous but put to shame whoever states them.

 

Anyone can verify with the MFSA and establish that Green MT is a company owned 99% by GRTU and 1% by Vince Farrugia in his capacity as Chief Officer of GRTU, a requirement necessary at law. Green MT is a not for profit organsiation depending on its income on payments made by the 247 members. These payments are made according to the volume of recyclable materials collected and covering the legal requirements of each paying member. In order to fulfill its functions GRTU signs agreements with the 41 Local Councils in who's localities in total more than 70% of the recyclable waste is collected.  And Green MT also collects from private sector, large enterprises that produce large volumes of recyclable waste. In its operations GRTU engages 69 private suppliers as it is GRTU's and Green MT's policy not to compete directly with any private supplier of service. No profit is made on the total cost of the operation and therefore no money goes to GRTU as any positive balances are ploughed back as advantages to the contracting Local Councils through various schemes and projects to the benefit of the local community and financed by Green MT and to the individual members of Green MT in the form of increased services and direct lowering of fees payable to Green MT.

Vince Farrugia is Chairman of the Board of Directors and as part of his functions as Director General of GRTU, he does not receive any remuneration from Green MT and not even in the form of other benefits. Anything stated to the contrary by whoever, are sheer lies.

On 15^th February, the European Parliament' adopted the IMCO Committee report by Ms Gebhardt on the implementation of the services directive. Amongst the points made:

 

Lack of information and unnecessary administrative burdens are still seriously hindering cross-border trade in services. The report outlines concrete proposals for Member States to improve the implementation of the Services Directive.

MEPs point to the need to ensure easy access to information for businesses and to step up administrative cooperation, as areas where Member States can improve the directive's implementation.

The functioning of the Points of Single Contact (PSC) set up under the directive must be improved. It was suggested that PSCs be turned into comprehensive e-Government portals, allowing procedures and formalities to be completed remotely, by electronic means and providing relevant information to service providers, including information on labour and tax law as well as procedures related to VAT and social security registration.

All information given by the PSCs should also be available in languages other than the national language. In particular, the PSCs should take into consideration the languages of neighbouring countries.

MEPs regret that the PSCs and cross-border provision of service opportunities are not yet widely known by service providers and call on the Commission and Member States to launch information and training campaigns as soon as possible and to improve the visibility and recognisability of the "eu-go" domain which brings together all PSC websites.

Better training for administrative cooperation: the report urges Member States to improve training of civil servants aiming to step up administrative cooperation and facilitate cross-border provision of services. It also underlines the beneficial impact of the internal market information system (an electronic tool for cooperation between national and regional administrations).

Scope of the directive: MEPs noted the discussion in some Member States on services excluded from the scope of the Directive because of their specific nature (such as the health services or transport) and suggested that these services may require a specific framework which could be included in forthcoming work on the Single Market Act.

GRTU welcomes the European Parliament's assent to the comprehensive free trade agreement between the EU and South Korea. This is a great day for European retailers and wholesalers.

 

In the current economic environment, the EU-Korea deal is exactly the right sign against protectionism. Open markets sustain growth and prosperity.

The agreement significantly improves the conditions for European traders on the Korean market. The abolition of size restrictions will allow retailers to freely choose the format of their stores in Korea. Unlike today, they will also be allowed to offer an almost complete range of goods to Korean consumers. This will not only enhance their competitiveness on the highly challenging Asian market, but also act as a catalyst for European exports.

Korea counts among the biggest trading partners of the European Union. The trade deal brings European companies access to 50 million consumers and is the most ambitious trade agreement the EU has ever negotiated.

Director General Vince Farrugia has taken an important role at the EESC as representative of owners of Maltese enterprise. Vince Farrugia is member of the Employers Group Bureau and also member of the Bureau of INT (Section for the Single Market, Production and Consumption). He is also member of ECO (Economic and Monetary Union and Economic and Social Cohesion), TEN (Transport Energy, Infrastructure and Information Society) and CCMI (Consultative Commission on Industrial Change) and member of the Transport Category and.

 

He has been appointed Rapporteur on the Commission Communication on the effective enforcement of budgetary surveillance in the euro area, on the Commission paper on Removing Tax obstacles for EU-citizens and also on the Commission Green Paper on expanding the use of e-Procurement  in the EU. He is also member of the Study groups that are formed to make preparations on opinions of Sanctions-Financial Services and Audit Policy.

During the meeting held under the Hungarian Presidency in Budapest Vince Farrugia also took part in the Hearing of the Single Market Observatory (SMO) where he presented GRTU's views on the Single Market Act. These views will be incorporated in the Opinion proposed by the EESC on the Small Business Act.

Vince Farrugia has this week also raised the problems faced by the many Maltese SMEs who operate and invest in Libya. The plight of Maltese entrepreneurs in Libya is similar to that of other entrepreneurs from other EU Member States. Vince Farrugia requested that EESC President stresses the issue with Foreign Affairs Representative Jose Manuel Barroso so that in the assistance programme proposed by the EU in reaction to the Libyan crises they also give high priority to the plight of European owners and private investors in Libya. 

GRTU repeatedly stressed that under OPM instructions Government Department Secretaries and Authorities are obliged to consult stakeholders affected by any proposed Legal Notice or Legislation. OPM circular also insists on the drawing of a mitigation plan to relieve any dysfunctional impact of any proposed new legislative measures.

 

 

 

 

 

 

 

This OPM is apparently a dead letter or otherwise it is held as a top security item as never is any report published that declares with whom of the stakeholders has the consultation been done and what mitigation action has been proposed to alleviate any negative economic or social impact.

Is it possible that no member of parliament demands this information? Why Legal Notices are laid on the table of the House of Representatives? As the GRTU.

The GRTU, Chamber of Small and Medium Enterprises is once more creating an Awareness Campaign both with its members as well as the Public in general regarding the prohibition of Smoking in Public Places, and the sanctions which the law provides in the case of breaches by patrons in public establishments, against the patrons themselves as well as the management of such public places.

 

During a cordial meeting held with High Officials of the Executive Police, GRTU officials moreover discussed the enforcement being carried out by the Police of the ban on Smoking in Public Places. The GRTU emphasized on the importance in the Police observing the discretion granted by Article 17 of the Tobacco (Smoking Control) Act (Chapter 315 of the Laws of Malta), in the event of persons being found smoking in public places, in relation to the operators of public establishments "who exercised  all due diligence to prevent the commission of the crime". Consequently if the operators have taken every possible care in preventing persons from smoking inside their establishments but patrons are still found breaking the law, then the establishment's operators should not be prosecuted.

Following the campaign which the GRTU had embarked upon in 2004 when the Smoking In Public Places Regulations originally came into force, Warning Stickers are once more being distributed to establishments which prominently indicate that the venue a patron has entered into is a public place and that consequently smoking therein is prohibited. These stickers serve a dual purpose: that of informing the general public that it is against the law to smoke in a particular venue, as well as a direct message from an establishment's management that they are adhering to the Smoking In Public Places Regulations and thus enforcing the smoking ban within their premises.

The GRTU invites operators of public establishments to collect their stickers, which are available in two sizes, from its offices in Republic Street Valletta.

Further information may be obtained from Philip Fenech, President Tourism, Hospitality & Leisure Division, GRTU on 99493534.

How to improve productivity and reduce costs in manufacturing! European Commission-funded programme in Japan – Call for applications

In-depth analysis of Japanese manufacturing methodology.

You are an EU manager; you work in a manufacturing company. Participate in the 5-day "World Class Manufacturing" training mission in Japan!

 

The programme provides:

In-depth analysis of Japanese manufacturing methodology

Lectures, seminars and panel discussions, presented by experts from Japanese industry

Company and factory floor (Gemba) visits

Preparation and post-visit reviews

No tuition fee for SMEs and the European Commission grants 600 EUR scholarships to participants from SMEs.

Next training missions in Japan:

Training dates: 27 June – 1 July 2011 – Application deadline: Thursday, 24 March 2011

Training dates: 17 – 21 October 2011 – Application deadline: Thursday, 9 June 2011

More information:

Contact: Céline GODART : – Tel:+32 2 282 3716

http://onm60.com/zelvarmow2pscj4zmj/index3.html